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TMI Blog2021 (1) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... nds of its inability to liquidate its financial debt. 2. The facts mentioned in the application in brief are as follows: i. That the Corporate Debtor, a company incorporated under Companies Act, 1956 approached the Financial Creditor, a member of the consortium of banks led by Allahabad Bank, to sanction working capital of Rs. 30 Crore. ii. The Financial Creditor as a member of the consortium of banks sanctioned the credit facility to the Corporate Debtor on 03.08.2007. The credit facility was renewed on 18.04.2009, 16.01.2010, 30.03.2011 and 16.04.2011. iii. The Corporate Debtor signed and executed all necessary documents on every occasion pursuant to the credit facility and bound by the terms and conditions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmon Collateral Security for both TL and Working Capital facilities: a) Equitable mortgage (pari passu charge among the member banks) of residential property of Sri Hari Ram Bindal bearing No. K-1/32, Model Town-II Delhi. b) Pledge of total 39, 48, 068 shares held by the promoters on pari passu basis among the consortium member banks. c) Pledge of 50% of shares out offresh capital of Rs. 24 crores to be raised by the promoters on pari passu basis among the consortium member banks. v. That further at the request of Corporate Debtor Company, the Financial Creditor vide Sanction Letter dated 27.02.2012 renewed the following Credit Facilities to the tune of Rs. 37.00 Crore on the terms and conditions mentioned t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner and perused the averments made in the application. 4. After the hearing of the main application, some additional documents alongwith the written submissions have been filed on behalf of the applicant, therefore, we would like to consider those documents and the written submissions. 5. Ld. Counsel for the petitioner submitted that although the NPA was declared on 06.08.2012 but again loan was sanctioned on 12.01.2013, which was subsequently modified on 12.01.2015. He further submitted that on 29.04.2014, there was restructuring of the credit facility and again on 24.03.2017, the Corporate Debtor sent a plan for OTS and the repayment of the loan, hence the application is within time. 6. In the light of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ument, we notice that there is no clear cut acknowledgment as it was in the settlement agreement dated 29.04.2014. The concluding para of this document is quoted below: - "It is needless to mention that option for recovery through legal process shall perhaps lead to closure of plants thus deteriorating the valuation of assets and dimming the hopes of early realization of the amount now expected keeping in mind the above, we earnestly request you to kindly take a pragmatic view and ensure that company's debts are brought down to desirable level through a deep restructuring or OTS proposed by strategic investor or through the settlement with ARCs at the earliest." 9. Therefore, at this juncture, we would like to refer the S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y or right." 10. In the light of the aforesaid provision, when we consider the letter dated 24.03.2017 upon which the applicant has placed reliance, we are of the considered view that this letter would not be treated as acknowledgement of debt under Section 18 of the Limitation Act. 11. At this juncture, we would also like to refer to the decision of Babulal Vardharji Gurjar vs. Veer Gurjar Aluminium Industries Pvt. Ltd. Reported in Manu/SCOR/47022/2019 wherein the Hon'ble Apex Court held: "Even in the later decisions, this Court has consistently applied the declaration of law in B.K. Educational Services (supra). As noticed, in the case of Vashdeo R. Bhojwani (supra), this Court rejected the contention suggesting contin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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